Volume 14, Issue 2

A Study on the Cost Stickiness of Credit Unions

Kang Jung-Won, Hong Yong-Sik, Jeong Kyunbeom

This study conducts a comprehensive study on the cost downward rigidity of credit cooperatives based on the basic analysis model of Anderson et al. (2003) for a total of 9,790 credit cooperatives operating from 2001 to 2014 as of the end of 2014, the most recent sample period of limited data. The adjustment effect was verified by characteristic factors (operating ratio of loans to total assets, size of assets, subject to timely corrective action, reduction of operating income, etc.), and general control variables such as employee concentration and decrease of operating income were used. As a result of the empirical analysis, it was confirmed that credit cooperatives, like general companies, showed a downward rigid cost behavior in which the reduction rate of cost was smaller than the reduction rate of operating income, and the moderating effect by the characteristic factors of the credit union was also confirmed. This study is meaningful in that it presents differences in cost behavior by industry, such as manufacturing, construction, distribution, and financial industries, by confirming that accounting standards such as profit and loss statements affect factors such as loan operating ratio, total asset size, and timely corrective measures.

Keyword: Credit Union, Cost Stickiness, Proportion of Loans Operation, Prompt Corrective Action

Characteristics of stock price volatility and Performance of risk forecasting by ESG performance

Lee Hunsang, Seong Youngkoog, Lim Hacksong, Hong Seungpyo

In this study, volatility characteristics by ESG performance of KOSPI listed companies were analyzed. And the risk forecasting performance by ESG performance was analyzed. The main results are as follows. First, Companies with poor ESG performance have been shown to have increased volatility asymmetry and are more responsive to new shocks. Second, the EGARCH model considering the asymmetry of volatility achieved relatively good risk prediction performance. Third, Companies with high non-financial risk have difficulty forecasting risk accurately, and risk is relatively underestimated. The following conclusions were drawn through this study. Non-financial risk increases the asymmetry of stock price volatility and destabilizes stock price movements. Conversely, if the non-financial risk is low, the stock price shows a stable movement. Therefore, Companies should consider improving non-financial performance for sustainable management. Companies exposed to non-financial risks are more likely to have relatively inaccurate risk forecasts and underestimate risks. Therefore, Companies should strive to minimize non-financial risks as well as financial performance. It also suggests that investors should estimate risk more conservatively, taking into account that there may be non-financial risks that are not accurately measured.

Keyword: ESG, Sustainability Management, non-financial risk, Volatility, EGARCH

The impact of FDI inflows and financial development on GTFP - A case study of Chinese provinces -

Cheng Pengfei, Choi BaekRyul

This study aims to understand the impact of foreign direct investment(FDI) and financial development on the growth of green total factor productivity(GTFP). Therefore, based on the data of 30 Provinces in China from 2003 to 2017, the Biennial Malmquist-Luenberger (BML) Productivity Index is constructed to measure GTFP. At the same time, this study empirically analyzes the impact of FDI and financial development on GTFP from the perspective of financial development scale and financial development efficiency by using the fixed-effect regression method, and focuses on the impact of the interaction between FDI and financial development on the growth of GTFP. Furthermore, regional heterogeneity is also analyzed. The empirical results show that (1) FDI and financial development can promote the growth of regional GTFP, but there is obvious regional heterogeneity. (2) Compared with the scale of financial development, the efficiency of financial development has a more significant effect on promoting GTFP. (3) The interaction between FDI and financial development can also promote the growth of GTFP.

Keyword: Foreign Direct Investment, Financial Development, Green Total Factor Productivity

An Analysis of Environmental Accounting Issues Using Big Data

Cheng Pengfei, Choi BaekRyul

As the importance of environmental accounting increases, this study collected big data on 'environmental accounting' existing on Korean social networks from 05/01/2021 to 05/01/2022 to analyze frequency, network analysis, centrality analysis, and CONCOR analysis were performed.. As a result of the analysis, the keywords 'education' and 'management' in common showed high importance in all analyses. This shows that companies and people have increased their awareness of environmental problems, but there is a need for environmental education due to the absence of environmental education. As a result of conducting frequency analysis, 'industry', 'analysis', and 'recruitment' were at the top, indicating that environmental accounting experts need to be hired to refine environmental accounting guidelines. As a result of network analysis, there are 'system', 'investment', and 'program', and it means that a computer program for environmental accounting. In the centrality analysis, there was an issue in applying environmental accounting to agriculture, and for this, it indicates that the government needs tax law benefits. In the CONCOR analysis, it is necessary to introduce environmental accounting in various fields, and for this, it was necessary to take the environmental accounting qualification test. As a result of this analysis, future studies on performance measurement for environmental accounting are needed.

Keyword: Big data, sustainability reports, Environmental reports, Environmental accounting, ESG management